Is Murray, Utah Good for Airbnb Investment?

To start an Airbnb in Murray, Utah, begin by researching local zoning laws and regulations through Murray City's planning department, as Utah generally allows short term rentals but municipalities may have specific requirements including business licenses, safety inspections, and occupancy limits.

Launch checklist

• Obtain necessary permits including a Murray City business license (approximately $50 to 100 annually), ensure compliance with fire safety codes, and verify your property meets health department standards for short term rentals.
• Find a suitable property in residential zones that allow short term rentals, considering proximity to Salt Lake City attractions, Intermountain Medical Center, and local amenities, with typical startup costs ranging $15,000 to 30,000 for furnishing and setup.
• Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, smart locks, and local guidebooks highlighting nearby attractions like Murray Park and Fashion Place Mall.
• Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos, competitive pricing ($80 to 150/night depending on size and location), and detailed descriptions emphasizing proximity to downtown Salt Lake City (15 minutes) and outdoor recreation.
• Manage operations by implementing automated check in systems, hiring local cleaning services (typically $40 to 80 per turnover), maintaining 24/7 guest communication, collecting Utah state sales tax (4.85%) plus local taxes.

To identify profitable STR properties in Murray, Utah, focus on locations within 15 to 20 minutes of downtown Salt Lake City, near major employers like Intermountain Medical Center, and close to outdoor recreation access points leading to Big Cottonwood Canyon and Millcreek Canyon.

What to prioritize

• Target 2 to 4 bedroom single family homes or condos built after 1990 with modern amenities, parking, and outdoor spaces, as these appeal to both business travelers and families visiting nearby ski resorts.
• Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long term rental income by 40 to 60%, typically finding sweet spots in the $300,000 to $500,000 purchase range that can generate $150 to 250 per night.
• Research competition by analyzing existing Airbnb and VRBO listings within a 2 mile radius, identifying gaps in amenities or underperforming properties with poor photos or management.
• Utilize tools like Rabbu for Utah specific market data, consult with local real estate agents familiar with Murray's zoning laws and HOA restrictions, and leverage the Utah Association of Realtors MLS system while monitoring seasonal demand patterns driven by Snowbird and Alta ski seasons.

To obtain an Airbnb/STR permit in Murray, Utah, you must first contact the Murray City Planning Department at 801 to 264 2660 or visit City Hall at 5025 South State Street to submit a Conditional Use Permit application, as short term rentals require special approval in residential zones.

Documents and approvals

• Required documents include a completed CUP application form, site plan showing parking arrangements, floor plan of the rental unit, proof of property ownership or lease agreement, contact information for a local property manager (required to be within 30 minutes of the property).
• The process typically takes 6 to 8 weeks and includes a public hearing before the Planning Commission.
• Murray specific requirements mandate that the property owner or designated manager must respond to complaints within 30 minutes, provide adequate off street parking (minimum 2 spaces), maintain the property in compliance with International Property Maintenance Code.
• Once approved, you must also obtain a Murray City business license ($75 annually) and comply with Utah state tax registration requirements for transient room tax collection, with final inspection required before operation can begin.

Short term rentals (STRs) are legal in Murray, Utah, but operate under specific municipal regulations that require property owners to obtain a business license and conditional use permit before operating.

Core operating requirements

• The city allows STRs in residential zones but with restrictions including occupancy limits, parking requirements, and noise ordinances to minimize neighborhood impacts.
• Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and emergency egress requirements.
• Murray prohibits STRs in certain residential areas where homeowner associations have specific restrictions, and the city maintains the right to revoke permits for violations of noise, parking, or occupancy rules.
• Recent changes in 2022 to 2023 have strengthened enforcement mechanisms and increased penalties for non compliant operators, while also streamlining the application process for legitimate operators who meet all requirements.
• The city requires annual permit renewals and maintains a registry of approved STR properties to ensure ongoing compliance with local regulations.

The best Airbnb investment areas in Murray, Utah include the Fashion Place West neighborhood near Fashion Place Mall, which attracts shopping tourists and business travelers visiting corporate offices; the Murray City Center district around 5300 South. These areas benefit from Murray's strategic location between Salt Lake City and major ski resorts, consistent business travel from nearby corporate headquarters including Intermountain Healthcare and Vivint, and year round demand from visitors attending events at the Maverik Center in nearby West Valley City.

Airbnb properties in Murray, Utah are subject to multiple lodging taxes including Utah's state transient room tax of 1.0% and Salt Lake County's transient room tax of 1.0%, for a combined rate of approximately 2.0% on gross rental receipts.

Taxes and filing responsibilities

• These taxes apply to short term rentals of 30 days or less and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018 to 2019.
• Property owners who collect taxes independently must register with the Utah State Tax Commission and Salt Lake County, file monthly returns, and remit taxes by the 20th of the following month.
• Murray city itself does not impose additional lodging taxes beyond county and state requirements as of 2023.
• Exemptions generally include rentals exceeding 30 consecutive days, which are considered long term stays in preference to transient lodging, and properties rented to permanent residents.

To start an Airbnb in Murray, Utah, the total estimated costs would be approximately $485,000 to $520,000.

Cost breakdown

• Property purchase represents the largest expense at $425,000 (median home price in Murray as of 2023).
• Furnishing costs typically range $15,000 to $25,000 for a complete 3 bedroom setup including furniture, appliances, linens, and décor.
• Initial setup costs including professional photography, listing creation, and basic renovations average $3,000 to $5,000.
• Permits and fees in Murray include business license ($50), short term rental permit ($200 to $400), and potential HOA approval costs totaling approximately $500 to $1,000.
• Insurance premiums for short term rental coverage run $2,000 to $3,000 annually, so roughly $1,000 to $1,500 for six months.
• Utilities setup and six months of service (electricity, gas, water, internet, cable) cost approximately $1,800 to $2,400.
• First six months operating costs including cleaning services ($150 per turnover), maintenance reserves, property management software subscriptions, and marketing expenses total $4,000 to $6,000.
• Additional considerations include potential property improvements and emergency fund reserves of $10,000 to $15,000, bringing the comprehensive startup investment to the upper range of the estimate.

Airbnb properties in Murray, Utah typically generate annual revenues between $18,000 to $35,000 for entire homes and $8,000 to $15,000 for private rooms, with average daily rates ranging from $65 to $120 depending on property size and amenities.

Profitability indicators

• Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($25 to $40 per turnover), utilities ($150 to $250 monthly), property management (10 to 20% of revenue), insurance ($800 to $1,200 annually).
• Properties within 15 minutes of downtown Salt Lake City or near Intermountain Medical Center command premium rates, with successful hosts like those operating converted basement apartments near 5400 South achieving 75 to 85% occupancy rates and net profit margins of 25 to 35%.
• Key success factors include proximity to major employers like Intermountain Healthcare, competitive pricing 10 to 15% below Salt Lake City rates, professional photography, rapid guest communication.
• Properties with dedicated entrances, parking, and modern amenities typically outperform shared spaces by 20 to 30% in both occupancy and nightly rates.

Airbnb investments in Murray, Utah typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% based on current market conditions.

Return planning figures

• Properties in Murray benefit from proximity to Salt Lake City's downtown area and ski resorts, with average daily rates of $85 to 120 depending on property size and amenities.
• Initial profitability usually occurs within 12 to 18 months for well positioned properties, with break even occupancy rates around 45 to 55% annually.
• The Murray market shows strong demand from business travelers visiting nearby tech companies like Adobe and eBay, as well as tourists accessing Wasatch Mountain recreational activities.
• Investment properties typically require $40,000 to 80,000 down payment for median priced homes around $400,000 to 500,000, generating monthly gross revenues of $2,500 to 4,200 after accounting for seasonal fluctuations and operating expenses averaging 35 to 45% of gross income.

STRSearch is a national platform that specializes in identifying profitable short term rental investment properties across markets including Murray, Utah.

Companies and resources

• In the local Murray and Salt Lake City area, real estate agents like those at KW Commercial and Coldwell Banker Commercial work with Airbnb investors.
• National services include Mashvisor, which offers Airbnb investment property analytics for Utah markets, AirDNA for market data and revenue projections, and BiggerPockets for investor networking and deal sourcing.
• Local Utah based companies like Utah Real Estate Investments and Mountain West Commercial Real Estate have agents experienced in investment properties suitable for short term rentals.
• Additional national platforms serving the Murray market include Roofstock for turnkey rental properties, HomeUnion for investment property sourcing, and AvantStay for luxury short term rental investments.